Category: Trusts

A federal lien and garnishment attach to the beneficiary’s interest in a spendthrift trust even if the trust gives the trustee sole discretion over distributions and even if the beneficiary disclaims his interest in the trust. A beneficiary of a spendthrift trust established under California law has a sufficient right to payment to make the…

A bankruptcy trustee may recover principal distributions from a spendthrift trust that are already due and payable to the bankrupt and up to 25% of future anticipated distributions from the trust to the bankrupt, both diminished by sums needed for the bankrupt’s and his/her dependents’ needs for support and education. A judgment lien creditor or…

To withhold attorney-client communications from a successor trustee, a predecessor trustee must take affirmative steps, at the time of seeking the attorney advice, to show the consultation was made in the trustee’s personal, not fiduciary, capacity. Following Moeller v. Superior Court (1997) 16 Cal.4th 1124, this decision holds that a predecessor trustee may be able…

Substantial evidence supported the findings that defendant trustees did not breach their fiduciary duties by failing to tell plaintiff about her subtrust and that plaintiff suffered no damage from her asserted ignorance of the subtrust. A trustee owes the beneficiary a fiduciary duty to inform the beneficiary that the trust exists for his benefit. However,…